Dividend analyst

Description

Dividend analysts calculate and allocate dividends and interest incomes of a company’s earnings to a category of its shareholders. They assess business systems and processes in order to identify user needs and to deliver appropriate solutions. They also undertake dividend forecasts on amounts and payment schedules and identify potential risks, based on their financial and market price expertise.

Other titles

The following job titles also refer to dividend analyst:

dividend calculation clerk
dividends analyst
dividends clerk
dividend clerk
dividend and coupon analyst

Minimum qualifications

A bachelor’s degree in accounting and finance, business administration, mathematics, or a related field is generally required to work as dividend analyst. Some employers may prefer candidates with a master’s degree in these fields..

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Dividend analyst is a Skill level 4 occupation.

Dividend analyst career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to dividend analyst.

investment analyst
mergers and acquisitions analyst
investor relations manager
corporate investment banker
securities analyst

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of dividend analyst.

  • Financial forecasting: The tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.
  • Business valuation techniques: The processes to valuate the worth of the assets of the company and the value of the business following techniques such as asset-based approach, business comparison, and past earnings.
  • Financial markets: The financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.
  • Stock market: The market in which shares of publicly held companies are issued and traded.
  • Actuarial science: The rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.

Essential skills and competences

These skills are necessary for the role of dividend analyst.

  • Perform stock valuation: Analyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.
  • Analyse market financial trends: Monitor and forecast the tendencies of a financial market to move in a particular direction over time.
  • Analyse financial performance of a company: Analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external information of the market.
  • Liaise with shareholders: Communicate and serve as communication point with shareholders in order to provide an overview on their investments, returns, and long-term plans of the company to increase profitability.
  • Calculate dividends: Calculate the payments made by corporations as distribution of their profit to the shareholders, ensuring that the shareholders receive the correct amount in the correct format, meaning in monetary payouts via deposits or via the issuing of further shares or share repurchase.
  • Forecast dividend trends: Forecast the payouts corporations make to their shareholders in the long term, taking into account prior dividends, the corporation’s financial health and stability, stock market trends, and shareholders’ reactions to those trends.
  • Monitor stock market: Observe and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.
  • Maintain register of shareholders: Keep a register of shareholders and monitoring changes in share ownership of the company.
  • Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.
  • Maintain financial records: Keep track of and finalise all formal documents representing the financial transactions of a business or project.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of dividend analyst. However, mastering this knowledge allows you to have more opportunities for career development.

  • Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
  • Modern portfolio theory: The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of dividend analyst. However, mastering these skills and competences allows you to have more opportunities for career development.

  • Trace financial transactions: Observe, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanagement.
  • Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
  • Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
  • Synthesise financial information: Collect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.
  • Analyse business plans: Analyse the formal statements from businesses which outline their business goals and the strategies they set in place to meet them, in order to assess the feasibility of the plan and verify the business’ ability to meet external requirements such as the repayment of a loan or return of investments.
  • Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
  • Provide support in financial calculation: Provide colleagues, clients or other parties with financial support for complex files or calculations.
  • Obtain financial information: Gather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.
  • Manage financial risk: Predict and manage financial risks, and identify procedures to avoid or minimise their impact.
  • Conduct financial audits: Evaluate and monitor the financial health, the operations and financial movements expressed in the financial statements of the company. Revise the financial records to ensure stewardship and governability.
  • Make strategic business decisions: Analyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the options and alternatives to a challenge and make sound rational decisions based on analysis and experience.
  • Handle financial transactions: Administer currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.

ISCO group and title

2411 – Accountants


References
  1. Dividend analyst – ESCO
Last updated on August 28, 2023